Daily Digest

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Daily Digest 11/11 - Greek Economy Set To Shrink Further, Chicago Teachers Ready To Strike

Wednesday, November 11, 2015, 8:23 AM

Economy

Chicago pension payments will lag despite legal outcomes: Moody's

The third-biggest U.S. city has been mired in a financial crisis largely fueled by its $20 billion unfunded pension liability. Moody's, which dropped Chicago to the "junk" level of Ba1 with a negative outlook in May, laid out four scenarios facing Chicago based on the fiscal 2016 budget it passed last month.

Vast majority of Chicago teachers ready to strike: reports

The district, which serves about 400,000 students at more than 600 schools, faces a $1.1 billion structural deficit and thousands of possible teacher layoffs after Christmas.

Lawmaker pens book to warns of public pension crisis (Pa.)

The state’s two largest public pension systems, the State Employees’ Retirement System and the Public School Employees’ Retirement System, have an unfunded liability of more than $53 billion, according to a state budget report in March. McGinnis says it’s more than that.

Treasury Sells Record $52 Billion in Debt Amid Shortage of Bills

The Treasury sold $52 billion of four-week bills in its biggest regularly scheduled offering on record as it ramps up sales of short-term securities after cutting back as the U.S. approached its borrowing limit.

Japan’s national debt to exceed 1,000tr yen

The Japanese government’s debt is expected to reach just over 1,167 trillion yen ($9.469 trillion) in the 2015 fiscal year, according to data released by Japan’s finance ministry on Tuesday. This translates to about 8.3 million yen per Japanese citizen.

Corporate America deep in debt - Goldman Sachs

Years of low interest rates and a boom in mergers and acquisitions (M&A) have made American companies spend without looking back. This has resulted in the highest corporate debt in a decade, close to $1 trillion, according to a report by Goldman Sachs.

Jump in emerging market household debt raises red flags- IIF

The IIF estimated that combined global household debt was now more than 44 trillion and that $6.2 trillion of a $7.7 trillion rise in the amount since 2007 - prior to the global financial crisis - was in emerging markets. That equated to a rise in those regions of more than 120 percent to around $3,000 per adult, according to latest data.

ECB's Liikanen warns of downside risks to inflation, growth

The euro zone's inflation and growth prospects are facing downside risks, European Central Bank's governing council member Erkki Liikanen said on Tuesday, adding the ECB is "willing and able" to act to achieve its price growth target.

ECB Faces Three Suits Over Quantitative Easing in Germany

"With its euphemistically so-called Quantitative Easing policy, the ECB is seeking to inflame inflation by printing huge amounts of money," said Gauweiler, who was behind a case that resulted in a ruling from the EU’s top court earlier this year. "This program is economic policy and first and foremost serves private banks from which the ECB purchases problematic loans. It is turning itself into the bad bank of Europe."

Russian Car Sales Fall More Than Forecast as Recession Hits

Sales of new cars and light commercial vehicles contracted 38.5 percent from a year earlier after a 29 percent drop in September, the Association of European Business in Russia said in a statement on Tuesday. That was worse than the median of six estimates in a Bloomberg survey for a 33 percent decline.

Rising food prices to hit rural India in 2016

Prices of vegetables like onions, tomatoes and potatoes have already been rising, with some staples up as much as 20 percent in a month. Palm oil prices have also climbed in the last two months, while milk prices have risen by 10 percent.

Brazilian Real Advances as Intervention Offsets Levy Concerns

Brazil’s sovereign rating was cut to junk by Standard & Poor’s in September. Fitch Ratings and Moody’s Investors Service rate the country the lowest level of investment grade. The rating companies have cited concern over slow growth and the fiscal scenario.

Swedish cbank increasingly ready to act over strong crown, minutes show

Sweden's central bank stands increasingly ready to use a full range of policy tools to keep any strengthening of the crown in check, even as inflationary pressures rise, minutes of its latest meeting showed on Tuesday.

Draghi Replaces Yellen as Savior for Borrowers Before Fed D-Day

After Draghi announced a 1.1 trillion-euro ($1.2 trillion) bond-buying program on Jan. 22, holdings by euro-area residents of debt and equity in the nine European Union countries outside the currency bloc soared to fresh records, ECB data show. Total portfolio investments rose more than 9 percent in the first quarter to 2.05 trillion euros.

Rand's Record Fall Adds Pressure on South Africa's Central Bank

South Africa’s rand plunged to a record against the dollar on Tuesday, increasing pressure on the central bank to raise borrowing costs at a policy meeting next week.

Krung Thai Bank cuts 2015 loan target on weak economy

Krung Thai Bank , Thailand's second largest lender, has cut its 2015 loan growth target as the bank is more cautious on lending amid slowing economic growth and rising bad debts, its president Vorapak Tanyawong said on Tuesday.

Seoul Office Vacancy to Stay High as Economy Slows, Savills Says

Office vacancies in Seoul will probably remain high this year due to weakened demand for space from companies as South Korea’s economic growth slows, according to Savills Plc.

Indonesia's Permata says sees pressure on portfolio due to economy

Indonesia's PT Bank Permata Tbk said on Tuesday it has experienced "significant" pressure on its portfolio in the third quarter of this year due to the weakness in the economy, and sees more downside in the remaining quarter.

Economy Weakens for Trudeau as Watchdog Cuts Canada GDP Forecast

Canada’s budget watchdog says the outlook is growing more bleak just weeks after Prime Minister Justin Trudeau won power with a pledge to stimulate the country’s struggling economy.

China to keep policy support for economy to cope with challenges

China will maintain policy support for the economy as it faces headwinds caused by a sluggish world economy and domestic structural adjustments, Premier Li Keqiang said on Tuesday.

Developing Market Debt Hits $58.6Tn on Bailout Mania

Emerging-market debt has grown $28Tn since 2009, according to the Institute of International Finance, which on Monday introduced a database tracking 18 developing markets. Global debt has soared $50Tn during the period to surpass a total of $240Tn, or 320% of global gross domestic product, in early 2015. That's right, the Planet Earth is now more than 3 TIMES it's annual gross salary on debt!

More misery ahead for Greeks as economy set to shrink again

The European Commission, the OECD and the EBRD all say Greece is heading into recession again this year and next, sinking back into the mire after last year's positive reading ended a six-year depression.

Japan's Metals Producers Cut Targets as China's Demand Slows

Sumitomo Metal slashed its operating profit forecast by 37 percent to 74 billion yen ($600 million) for the year to March 31, after posting a 6.9 percent decline in the first half to 51.5 billion yen. It cited a significant fall in prices for the cut and warned that capital expenditure for the year would fall to 77.5 billion yen from 85.1 billion, according to a statement to the Tokyo Stock Exchange.

‘Limited room’ for policy makers to respond to economic shocks, Moody’s warns

Diron cautioned that authorities worldwide “lack the large fiscal and conventional monetary policy buffers to protect their economies from potential shocks.”

China's Deflation Pressures Signal More Monetary, Fiscal Easing

China’s consumer inflation waned in October while factory-gate deflation extended a record streak of negative readings, signaling policy makers may need to hit the gas again to ease deflationary pressures.

South Korean Economy Negatively Affected by China's Slowdown

"China is moving to adjust excessive investments that have accumulated since the 2008 global financial crisis, which could plunge the economy into a hard landing and have a chilling effect on South Korea," the report said.

Portugal’s leftists likely to oust new government in austerity vote

The mainstream Socialists are joined in opposition by the Left Bloc, the Communists and the Greens — three far-left parties that oppose Portugal’s membership in the North Atlantic Treaty Organization and are willing to abandon Europe’s common currency.

Fed’s Rosengren sees possible bubble in commercial real estate

The debate is noteworthy with the central bank on the verge of hiking interest rates for the first time in nine years. Many experts at the conference expressed concern the Fed might not have the tools needed to ward off the next financial crisis.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/10/15

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

4 Comments

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1469
Does Japan do cash accounting too?

Does Japan do cash accounting too to hide future obligation NPV?    Per Japanese citizen government debt is $67,230 which is only about $3K more than US debt per US citizen.   Of course, in the US if we include NPV of future obligations the numbers are MUCH worse.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4238
Negative Interest Rates the New Normal Next Time Economies Slump

 

Negative Interest Rates the New Normal Next Time Economies Slump

Bloomberg-5 hours ago
Customers shelter under umbrellas from the rain as they queue around the block to exchange their euros for Swiss francs outside a Change Migros, a bureau de ...

ECB to consider QE boost, deposit rate cut to hit target - Visco

Reuters-7 hours ago
He added the introduction of negative interest rates in the region has been smooth and other countries seem not to have experienced difficulties in pushing rates ...

Euro resists further falls, eyes on Draghi

Reuters-2 hours ago
Draghi's hints last month of the prospect of cuts in the ECB's already negative interest rates and an expansion of its money-printing program sparked a slide in ...

Sweden Is Developing the World's First Cashless Economy

GOOD Magazine-16 hours ago
For the past few months, the nation has maintained a negative interest rate, meaning that banks are losing cash day-to-day. To date, the banks have eaten these ...

Japan business mood dips as economy seen in recession -Reuters Tankan

Reuters - ‎15 hours ago‎
The Reuters Tankan sentiment index for manufacturers fell to 3 in November from 7 in October, posting the lowest reading since minus 4 in April 2013, when the central bank embarked on its quantitative and qualitative easing drive. Materials industries ...

Canadian consumer debt risk rising as economy slows

The Globe and Mail-15 hours ago
The economy's growth rate began falling, but credit expansion continued unabated until ... Canadians continued borrowing, albeit at a steadily slowing rate.
 

China October economic activity shows downward pressures persist

Reuters - ‎6 hours ago‎
BEIJINGChina's factory output growth hit a 7-month low in October while investment expansion slipped to its weakest pace since 2000, signs that further government policy support may be needed to shore up slowing demand in the world's second biggest ...

-China power output falls for second month in Oct - stats ...

Reuters-9 hours ago
Output was down 2.6 percent for the first 10 months to 3.466 trillion kWh. ... do nothing but add debt burden and idle capacity," Greenpeace said in a statement.

Chinese defaults increase as cement maker set to miss bond payment

The Straits Times-11 hours ago
SHANGHAI (BLOOMBERG) - China is headed for its latest corporate default amid slowing economic growth, as a cement maker said it will fail to pay bond ...

Chow Tai Fook Hits Record Low After Warning Profit to Plunge

Bloomberg-11 hours ago
... let them choose low-risk government debt or popular property investments. ... in China, which have been at the center of a stock boom and $5 trillion bust.

BoE s Haldane says UK economic growth not spectacular - CNBC ...

Yahoo7 News-3 hours ago
"We watch carefully the data as it flows through for signs the economy could be slowing down further or indeed picking up ... for now about (an interest rate of) ...

Hungarian economic growth is already slowing down

portfolio.hu-2 hours ago
Analysts polled by Portfolio agree that growth of the Hungarian economy decelerated further in the third quarter of 2015. The main drag was not only agriculture ...

Germany''s ''Wise Men'' Lower Growth Outlook for Domestic Economy

Nasdaq-15 minutes ago
The German government's top economic advisers lowered their growth outlook ... largest economy is facing in light of slowing growth in China and elsewhere.

Record share of young women are living with their parents, relatives

Pew Research Center - ‎3 hours ago‎
But that figure modestly increased from 1960 to 2000 and then sharply increased after that, especially with the onset of the Great Recession in 2008. The labor market recovery since then has not reversed the trend – in fact, it's become even more ...

Coming to a Balance Sheet Near You: $2 Trillion in Leases

Wall Street Journal-15 hours ago
The total possible impact for all companies: as much as $2 trillion. Within a ... the FASB says, leases will be considered “operating obligations” rather than debt.
 

Emerging markets face debt boom just as growth slows down

Telegraph.co.uk - ‎20 hours ago‎
Globally, total debts have risen by $50 trillion since 2009 to more than $240 trillion today, or 320pc of world GDP. Investors are increasingly worried about the state of emerging economies, particularly as the great growth engine of China slows down ...
 

National debt worse than we thought, former government official says

KTRH-5 hours ago
Dave Walker, former head of the Government Accountability Office, says the national debt isn't $18 trillion, but closer to $65 trillion. But Professor John Diamond ...

Fitch: US Bank Regulators Cite Weakening Loan Quality

Reuters-19 hours ago
... to highly leveraged lending at US banks where debt/EBITDA exceeds 6x. ... loans in the SNC review pool were up 31.8%, year over year, to $1.04 trillion.

Canadian public pension funds intensify leveraged strategies

The Globe and Mail-16 hours ago
... to squeeze more profit from their investments by doubling down with debt. ... 2.3 percent and yields on $1.9 trillion of European debt are actually below zero.

Brazil Impeachment Talk Masks a Bigger Issue: 9%-of-GDP Deficit

Bloomberg-11 hours ago
At 536 billion reais ($141 billion), the gap has swollen to the equivalent of more ... a full-blown debt crisis unless spending is reined in after a decade of largesse.

Energy Default Alarms Get Louder as Pain Seen Lasting Into 2016

Bloomberg-2 hours ago
Four firms owing a combined $4.8 billion warned this week that they may be at ... Yields on speculative-grade energy debt have risen to 12 percent, compared ...

'Sick man of Europe' Finland agonises over austerity

Reuters-5 hours ago
Unemployment, debt rising in country with high labour costs ... for 10 billion euros ($10.8 billion) of annual savings by 2030, including 4 billion euros by 2019.

Household debt keeps growing

Korea JoongAng Daily - ‎56 minutes ago‎
According to the Bank of Korea on Wednesday, households took out more than 9 trillion won of fresh loans from banks pushing the total outstanding loan amount to 624.7 trillion won ($540 billion). This is the biggest monthly increase in household loans ...

'Pause' in growth means bigger deficit, Ottawa's budget office says

Toronto Star - ‎20 hours ago‎
Back in April, the budget office said Ottawa would run a $1.1 billion surplus in 2015-16, break even in 2016-17 and post a $2.6-billion deficit in 2017-18. The spring forecast also projected shortfalls of $2.8 billion in 2018-19 and $2.5 billion in ...

Connecticut budget shortfall now projected at $1.4 billion

Thehour.com - ‎15 hours ago‎
That would push the post-election deficit to almost $1.4 billion. And if a new plan by Malloy and the state Teachers Retirement Board is implemented, Connecticut also would owe an extra $180 million in pension contributions in 2017-18, potentially ...

Atlantic City's Future Cloudy After Christie Vetoes Rescue Bills

NJTV News-17 hours ago
Four dead casinos in two years, thousands of unemployed, 50 percent tax increases, municipal layoffs, successful tax appeals by large casinos, all of it, ...

Goldman Sachs: Health-Care Costs Are About to Start Pushing Core ...

Bloomberg-2 hours ago
Health-care costs, a significant component of the Federal Reserve's preferred gauge of inflation, are poised to accelerate, according to a new report from ...

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Lesson for the day.

Kelly Brogan is a very impressive psychiatrist. I have watched her speak.

Psychosis cured by eating carbon.

http://kellybroganmd.com/snippet/case-gut-induced-mania/

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 3 2014
Posts: 633
Insight

http://uk.reuters.com/article/2015/11/11/uk-health-diabetes-sugar-idUKKC...

Never considered the fireplace as a source of supplements.

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